Forex Earnings - Can you make money with Forex

When it comes to starting a trading business to make money online, the majority of individual traders go after the strategy that will allow them to be a consistent winner, especially in Forex. However, few of them will succeed. Investing in the stock market and trading currencies is a risky business and not everyone can win.

First of all, a trader must know how to be profitable, adjust one or more trading strategies and adapt them to his personality without forgetting to control his profits and his risk. In any case, any method can and should be tested and tried before it is used on a real trading account. This evaluation allows you to know the positive or negative expectations of the strategy in question and notably several important statistical data to know. However, past results are not 100% representative of future results.

Also, a trader must develop a certain attitude to have the ability to execute his trading strategy reliably. This second part will be the focus of this article, highlighting the main reason why so many Forex traders give up and lose in the Forex market.

➡️How to Win in Forex: Don't chase quick wins

Indeed, to make money online, you must not succumb to the ease and temptation of taking your profits too quickly. This is a fundamental point in understanding how to be consistently profitable with forex trading.

A good place to start is to forget about unrealistic goals and misconceptions you may have about trading. There is a chance that you will be profitable within two or three trades with very quick profit-taking, however, in reality, forex trading requires a more fleshed-out technique in order not to lose your entire investment.

Beginning intraday traders who operate on short-term and small movements are most representative of this way of thinking. The statistics for these traders is that they lose 90% of their money within 90 days. It makes you think!

Essentially, to make money in the stock market, you should not trade too much. Paradox? Actually no! Every position taken is a risk, the more positions a trader takes the more potential losses he will expose himself to. The idea is to trade with an edge that has been tested and found to have a positive long-term trend. This does not necessarily mean taking positions on every market move but rather waiting for specific market conditions to take a trade and implement your plan.

The focus then should not be on the money, but on the process of learning how the market works and the strategies and tools of trading. See what approaches seem to work best for you and think about how to implement the strategy you choose.

It is important to absorb a lot of information about Forex trading to generate a comprehensive view of the business and understand it better.

➡️Gain trading: Don't trade all the time

Overtrading, or trading too much, or looking for the slightest opportunity to enter the market can have a detrimental effect on your trading account. It is important to understand that not every opportunity that presents itself will pay off. Without discipline, you may even create trading opportunities for yourself when in fact there is no point in taking a position at that time.

First, let's deal with overtrading. Warren Buffett said that to invest: "you need discipline... You have to wait until the time is right because investing your money is by no means an easy game. In baseball, you have to face situations that you don't necessarily like. In investing you don't have to do much. You can just sit there... and if you don't like the prices you see day in and day out, you can just wait until you do like the price and the market movements. When you know what you're doing and then you go for it. And you only need two or three moves."

Now, if you overlay this principle to forex trading, it's still relevant. The bottom line is that the trader should not make too many trades but a few good ones. If you're looking to make money trading, you shouldn't trade all day. Even the Financial Market Authority gives this advice.

Hopefully, when you trade on a live account you will have a strategy with specific predefined conditions for entering and exiting positions. 

The other part of trading too much has to do with the volume aspect. Beginning traders will tend to risk too much of their account on a few positions. If you are asking yourself the question: is it possible to make money with forex, it means that you are a beginner forex trader and you don't have to trade all day. Quite simply, you don't have the experience to do it.

Forex brokers offer significant leverage to their clients. In theory, this was originally done so that traders could make reasonable profits with small investments, allowing more people to see the value and power of trading. In practice, however, using high leverage can quickly bring down novice traders, who would try to maximize potential profits, but ultimately only maximize their actual loss.

Success in making money online is in the details, as always. The possibility of high leverage is not inherently a bad thing. It does allow for higher trading volumes for a trader with a limited margin. Higher volumes mean more pip value - the driver of profits and losses. However, it is the trader's choice to trade unreasonably with large volumes that then makes his account more susceptible to margin calls. As for leveraging itself, if anything, it is there to help a trader as long as he understands how leverage works and respects it.